Fidelity Updates Ethereum ETF Proposal to Include Staking
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Financial services giant Fidelity is seeking permission to stake a portion of the Ether it owns for its proposed spot Ether ETF to provide additional funds to investors.
Fidelity is one of eight fund issuers that submitted applications for an Ether ETF. The SEC is currently reviewing the application.
Financial services giant Fidelity is requesting permission to stake a portion of the Ether it owns in a proposed spot Ether Exchange Traded Fund (ETF) to provide additional funds to investors.
If the ETF is approved, Fidelity said in a 19b-4 amendment filed with the U.S. Securities and Exchange Commission (SEC) on March 18 that the fund will use one or more reputable staking providers to stake an undisclosed portion of its assets. . As set forth in the Amended Application, Fidelity will:
“The Sponsor may from time to time stake a portion of the Fund’s assets through one or more trusted staking providers, which may include affiliates of the Sponsor (“Staking Providers”).
Fidelity did not name a specific equity provider. There are several ether staking providers on the market today, such as Lido DAO, RocketPool, and StakeWise.
Fidelity is one of eight fund issuers that submitted applications for an Ether ETF. The SEC is currently reviewing the application.
Ark 21Shares also announced plans to stake some ETH in a new fund on February 8th. A few days later, Franklin Templeton joined the spot Ether ETF race and likewise planned to stake some Ether in the ETF to generate additional income.
On November 18 last year, it joined the competition with BlackRock, the world’s largest investment company, ARK Invest, owned by Cashwood, and cryptocurrency asset management company Grayscale.
VanEck’s final deadline is May 23. If the SEC does not approve all eight ETFs by then, all potential issuers will have to reapply at a later date.
Only 35% of spot Ether ETF approvals were expected by May, Van Eck’s deadline, according to Bloomberg ETF analyst Eric Balchunas.
Although the SEC’s radio silence on potential fund issuers and the political backlash against Chairman Gary Gensler were worrisome signs about the licensing process, Blachunas put the January approval outlook at 70%.
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